operational preformance
operational objectives
operational management
What is operational management?
operation management refers to the decisions and responsibilities of managing the production and delivery of products and services
what are the decisions operations managers make?
level of production - how much is produced
products to produce
How to produce
Labour intensive
capital intensive
how to provide the product or service
the supply chain - where business gets supplies, what they provide themselves, and where to distribute.
operational objetives
What are the operational objectives?
objectives set to improve the functions of operations within a business.
what are the five main objectives of operational performance?
Quality - quality of process, products, service
speed of response - competitiveness from faster service
dependability - the ability of the business to deliver on time while maintaining customers’ expectations
cost - increasing profits, becoming more competitive.
Flexibility - meeting customers needs more precisely
Other possible objectives
environmental objectives - Greater awareness of the environmental impact of business
defect rates - lower defective products and waste
safety - making it safer for employees
What influences operation objectives?
internal influences:
nature of business
mission statement
resources
objectives in other departments
External influences:
political/legal
environmental
social
technological
competitive
Can operational objectives be changed?
The objectives are set by what managers believe is most important and can be changed if needed
decision-making process
What is the process of decision-making?
Identifying operational objectives
analyzing business's current position
deciding on actions needed to be taken
implementing actions
reviewing to see if actions have served their intended purpose
Are there ethics that need to be considered?
treatment of employees, potential rewards
location of the business
safety standard
the environment of the business and around it